The trials of theory: Psychology and institutionalist economics, 1910–1931

The rise of the institutionalist school of economics, in the 1910s and 1920s, has recently been given the historical attention it deserves. However, historical studies of the school have left two questions unanswered. First, to what extent was the institutionalist's interest in academic psychology (frequently declared in their meta‐economic writings) realized in their economic writings? Second, what evidence of a fruitful collaboration with institutional economics can be found in the work of psychologists? In this paper I consider the meta‐economic statements of three key institutionalists, Wesley C. Mitchell, John M. Clark, and Walton H. Hamilton, and two key economic works by Mitchell and Clark. I contend that these works show little systematic engagement of academic psychology. A study of psychological literature of the period yields the same conclusion; in particular, industrial psychology did not come into fruitful contact with institutional economics, despite the parallel interests of the two fields and their parallel rise after World War I. © 2010 Wiley Periodicals, Inc.     

Multilevel mediation analysis: The effects of omitted variables in the 1–1–1 model

Multilevel mediation analysis examines the indirect effect of an independent variable on an outcome achieved by targeting and changing an intervening variable in clustered data. We study analytically and through simulation the effects of an omitted variable at level 2 on a 1–1–1 mediation model for a randomized experiment conducted within clusters in which the treatment, mediator, and outcome are all measured at level 1. When the residuals in the equations for the mediator and the outcome variables are fully orthogonal, the two methods of calculating the indirect effect (ab, c – c′) are equivalent at the between‐ and within‐cluster levels. Omitting a variable at level 2 changes the interpretation of the indirect effect and will induce correlations between the random intercepts or random slopes. The equality of within‐cluster ab and c – c′ no longer holds. Correlation between random slopes implies that the within‐cluster indirect effect is conditional, interpretable at the grand mean level of the omitted variable.     

Engaging the consumer: The science and art of the value creation process

Regulatory engagement theory [Higgins, E. T. (2006). Value from hedonic experience and engagement. Psychological Review, 113, 439–460.] proposes that value is a motivational force of attraction to or repulsion from something, and that strength of engagement contributes to value intensity independent of hedonic and other sources of value direction. This paper reviews different sources of engagement strength, including dealing with challenges by opposing interfering forces and overcoming personal resistance, preparing for something that is likely to happen, and using “fit” or “proper” means of goal pursuit. We present evidence that each of these sources of engagement strength can intensify the value of something, and we show how stronger engagement can not only make something positive more positive but also make something negative more negative. We also discuss how these effects of stronger engagement on the value of something else are independent of actors' own personal experiences during goal pursuit. We then broaden regulatory engagement theory by describing the nature of these personal experiences from different sources of engagement strength—distinct positive experiences (e.g., feeling “pleasure” vs. feeling “right”) and distinct negative experiences (e.g., feeling “tension” vs. feeling “defiance”)—and consider the science and art of combining them with engagement strength for maximal persuasion and influence.     

The Counselor as Prophet: Frank Parsons, 1854–1908

This article summarizes the life and work of the political and economic reformer, Frank Parsons. The author gives special attention to his founding, shortly before he died, of the Vocation Bureau, often described as the origin of professional counseling in the United States. Through his work, he offered a challenging example for counselors today as both a social crusader and a pioneer in the systematic guidance of youth.